One criteria for determining whether a worker is an employee or an independent contractor is the economic realities test.Under the economic realities test,a court considers whether a worker is economically dependent on the business,or is in business for himself or herself.

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Under the economic realities test, courts consider whether a worker is economically dependent on the business or, as a matter of economic fact, is in business for himself or herself. In applying the economic realities test, courts look to the degree of control exerted by the alleged employer over the worker, the worker's opportunity for profit or loss, the worker's investment in the business, the permanence of the working relationship, the degree of skill required by the worker, and the extent the work is an integral part of the alleged employer's business.

One Criteria for Determining Whether a Worker Is an Employee